Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.03 For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.10 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Fixed Cost per Month $ 1,100 $ 4,700 $ 8,300 $ 2,000 $ 1,800 Rent Administrative expenses Total expenses Net operating income Cost per Car Washed $ 0.80 $ 0.07 $ 0.15 $0.30 8,300 $ 52,120 7,060 1,644 1,470 7,520 8,300 2,200 1,946 36,140 $ 21,980 Required: Prepare a flexible budget performance report for August Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero

Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.03 For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.10 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Fixed Cost per Month $ 1,100 $ 4,700 $ 8,300 $ 2,000 $ 1,800 Rent Administrative expenses Total expenses Net operating income Cost per Car Washed $ 0.80 $ 0.07 $ 0.15 $0.30 8,300 $ 52,120 7,060 1,644 1,470 7,520 8,300 2,200 1,946 36,140 $ 21,980 Required: Prepare a flexible budget performance report for August Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...

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Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent Actual cars washed Revenue Expenses: For example, electricity costs should be $1,200 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Cost per Month Car Washed $0.40 $ 1,200 $ 0.06 $ 0.25 $ 0.40 $4,400 $ 8,300 $1,900 $1,500 Administrative expenses Total expenses Net…
Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.01 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.60 per car washed. The company actually washed 8.300 cars in August. Fixed Cost Cost per per Month Car Washed $0.40 $ 0.08 $1,100. $ 0.25 $ 4,400 $ 0.40 $ 8,400 Revenue Expenses Required: Calculate the company's activity variances for August Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. $2,000 $1,600 Cleaning supplies Electricity Lavage Rapide Activity Variances For the Month Ended August 31
Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance For example, electricity costs should be $1,300 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.90 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Wages and salaries Depreciation Rent Fixed Cost Cost per per Month Car Washed $ 0.60 $ 0.10 $ 0.25 $ 0.30 Administrative expenses Total expenses Net operating income $ 1,300 $ 4,300 $ 8,300 $ 2,200 $ 1,800 8,400 $ 59,370 5,480 2,100 $ 0.04 2,315 7,150 8,300 2,400 2,032 29,777 $ 29,593 Required: Prepare a flexible budget performance report for August. Note:…
Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses. $ 0.03 For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company expects to wash 8.300 cars in August and to collect an average of $6.20 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement Actual cars washed Revenue Expenses: For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost Cost per per Month Car Washed $ 0.70 $1,000 $ 0.07 $0.10 $.0.30 $ 4,300 $ 8,200 $2,100 $ 1,700 Administrative expenses Total expenses Het operating income 8,400 $53,560 6,310 1,551 1,070 7,150 8,200 2.300 1,849 28,430 $ 25,110
Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Rent Wages and salaries. Depreciation Administrative expenses For example, electricity costs should be $1,300 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.70 per car washed. The company actually washed 8,100 cars in August. Revenue Expenses: Fixed Cost per Cost per Month Car Washed $ 1,300 $4,400 $ 8,300 $2,000 $ 1,700 Lavage Rapide Activity Variances For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent $ 0.70 $ 0.08 Required: Calculate the company's activity variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.…
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: cleaning supplies Electricity Maintenance Mages and salaries Depreciation Rent Administrative expenses For example, electricity costs should be $1,200 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Fixed Cost per Month $1,200 $ 4,400 $8,100 $ 2,100 $1,800 Rent Administrative expenses Total expense Bet operating income Cost per Car Washed $0.80 $0.10 $ 0.20 $0.30 8,400 $56,050 7,140 2,000 1,900 7,250 0,100 2,300 2,032 30,722 $ 25,328 $ 0.04 Required: Calculate the company's revenue and spending…
Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation. Administrative expenses Rent $ 0.04 For example, electricity costs should be $1,500 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation. Rent Administrative expenses. Total expenses Net operating income Fixed Cost per Cost per Month Car Washed $ 0.60 $ 1,500 $ 0.08 $0.10 $ 0.30 $ 4,400 $ 8,000 $ 2,100 $ 1,500 Revenue 8,100 $ 56,500 5,300 2,110 1,040 7,160 8,000 2,300 1,720 27,630 $ 28,870 Required: Calculate the company's revenue and spending variances…
Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Revenue Expenses: Fixed Cost per Month $ 1,200 $ 4,100 $ 8,100 $ 2,000 $ 1,400 $ 0.04 For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 per car washed. The company actually washed 8,500 cars in August. Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Required: Calculate the company's activity variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Lavage Rapide Activity Variances For the Month Ended August 31 Administrative expenses Total…
Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.40 Electricity $ 1,300 $ 0.07 Maintenance $ 0.25 Wages and salaries Depreciation Rent $ 4,300 $ 0.20 $ 8,100 $ 2,100 Administrative expenses $ 1,700 $ 0.05 For example, electricity costs should be $1,300 per month plus $0.07 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.80 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expenses 0 Net operating income $ 0
Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.50 $ 0.06 $ 1,100 $ 0.15 $ 5,000 $ 0.30 $ 8,200 $1,900 $ 1,400 $ 0.05 For example, electricity costs should be $1,100 per month plus $0.06 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.80 per car washed. The company actually washed 8,600 cars in August. Required: Calculate the company's activity variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Revenue Lavage Rapide Activity Variances For the Month Ended August 31 $ 58,480 None Expenses: Cleaning supplies 4,300 F Electricity 1,616 F…
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance For example, electricity costs should be $1,200 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.40 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Wages and salaries Depreciation Rent Fixed Cost per Month $ 1,200 $ 4,900 $ 8,100 $ 1,900 $ 1,600 Administrative expenses Total expense Net operating income Cost per Car Washed $ 0.60 $ 0.06 $ 0.25 $0.30 8,500 $ 55,860 5,540 1,674 2,340 7,780 8,100 $ 0.03 2,100 1,752 29, 286 $ 26,574 Required: Prepare a flexible budget performance…
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses For Actual cars washed Revenue For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August are as follows: Lavage Rapide Income statement the Month Ended August 31 Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Fixed Cost Cost per per Month Car Washed $ 0.60 $ 1,400 $ 0.08 $ 0.25 $ 4,400 $ 0.30 $ 8,000 $ 2,200 $ 1,700 Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance 8,400 $ 51,900 Required: Prepare a flexible budget…